"We should not allow the global economic slowdown to become a trigger for building walls around ourselves through protectionism or erecting barriers to movement of people, services and capital," Prime Minister Manmohan Singh said, while addressing the United Nations General Assembly.
He said effective ways and means must be deployed to promote coordination of macro economic policies of major economies.
The Prime Minister also highlighted the need for reform of governance systems of international financial institutions, stating that the issue "ought to be pursued with speed and efficiency".
Addressing the issue of "deficit in global governance" was one of the several things which can be done collectively, Singh said.
Expressing his concern over the world economy being in trouble, he said the recessionary trends in the US, Europe and Japan are affecting confidence in world financial and capital markets.
He said the shoots of recovery, visible after the financial crisis of 2008 have yet to be blossom. "In many respects, the crisis has deepened even further," he said.
The Prime Minister said these developments are bound to have a negative impact on developing countries which have to bear the additional burden of inflationary pressures.
His comments come in the backdrop of India battling a near double-digit inflation, which has been exasperated by a sharp fall in rupee value, pushing up the landed cost of commodity imports, including the crude oil.